How can I broach the topic of money with my parents?
Money is not an easy topic to talk about, however, it is necessary. Before you approach this subject with your parents, you must understand that it might be difficult and awkward for them. Some parents might even be embarrassed because they are not ready to let you guys know about their finances, and they still want you to be able to look up to them, so keep your tone open and gentle.
Regardless of what they say, take some time to empathise with them and don’t belittle or judge them for the decisions they have made in the past.
A way to begin is to ask them if there are things you can do to lighten their plates financially, such as helping out with the monthly household expenses or bills. After sharing these with you, it’ll be easier to get an idea of their financial situation. They might not be upfront with you about it, you can try to get them to open up by asking them to envision how they want their retirement to be and how you guys can get there together. Some important specifics include:
• Monthly Income
• Monthly Expenses
• Any Outstanding Loans
• CPF Account balances
• Any Savings/Investments Plans in place for Retirement
After having an idea of their financial situation, you can then work together with them and your financial advisor to plan for their golden days, restructure their portfolios, and fill in the missing gaps.
Planning ahead can help make these transitions in their lives easier, both financially and emotionally.
Financial Services Consultant